Asia Pacific Travel & Tourism Report #6 - August 2021
Asia Pacific Travel & Tourism Report #6 - August 2021
12 top talking points from Australia, China, Malaysia, Saipan, Singapore, South Korea, Sri Lanka, Taiwan, Thailand and Vietnam.
Hello. Welcome to the 6th Asia Pacific Travel & Tourism Report… which is co-produced with Dr Jaeyeon Choe, who is currently in the UK. Our best wishes to Michelle Dy, the 3rd member of our team, who is starting a new career in Manila!
Featured destinations this month include Australia, China, Malaysia, Saipan, Singapore, South Korea, Sri Lanka, Taiwan, Thailand and Vietnam.
Hot topics range from China’s upcoming Golden Week to the Asia vs Europe travel disparity and a Thailand-South Korea travel bubble.
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Thanks for being on board,
Gary
12 Top Talking Points in August 2021
1) Thailand Plots a Travel Bubble with South Korea
The Phuket Sandbox’s mounting problems mean Thailand needs a Plan B. The Tourism Authority of Thailand (TAT) knows a recovery will only arrive with visitors from key Asian markets, such as Singapore, Malaysia, China, Japan and South Korea.
As Chinese tourists are unlikely to travel abroad any time soon, Thailand is seeking a travel bubble with South Korea - one of the few countries in Asia that has not restricted outbound tourism.
However, with COVID-19 cases high in Thailand, it is difficult to imagine many Asian tourists choosing to travel there until greater pandemic control is demonstrated.
Increasing numbers of South Koreans are travelling internationally. Seoul’s Incheon airport handled 10,000 passengers daily in August. This summer, they favoured Europe where vaccination rates are high. Now, with 40-year-olds eligible for a vaccine, this could drive winter outbound travel from South Korea.
If the TAT targets the right market segments with the right programmes, it could partially work. But it must research who has been travelling abroad, and why - and to learn whether Thailand might appeal to them - and when.
There are many unknowns in promoting intra-Asian travel, but high vaccination rates and destination safety are non-negotiable.
As Phuket illustrates, the concept of “launch flights, and they will come” isn’t working.
2) Singapore Sets the Table For China
While Asia Pacific awaits the return of Chinese tourists, destination marketers are busily producing virtual tours and livestreams exclusively for Chinese travellers.
Singapore is going further, by taking its most popular cuisines to China - which provided 3.63 million of its 19.1 million visitors in 2019.
Singapore was among the first Asian destinations to take culinary tourism seriously. In 1994, it launched the annual Singapore Food Festival - a month-long showcase for tourists of local snacks, dishes and delicacies. Then, in 2020, COVID-19 enforced virtual dining tours and online cooking classes.
This month, Singapore Tourism Board partnered with Shangri-La hotels in 7 Chinese cities to present special banquets designed to tempt the taste buds of gastro-tourists.
The billion dollar question, of course, is: When will China permit quarantine-free outbound travel for vaccinated residents? Any answer is guesswork. But for near-future clues, China Daily’s travel section features largely domestic destination content.
CLICK TO WATCH this CNA news clip about Singapore’s food promotion in China
Which brings us to…
3) China Hopes Volatility Softens for Mid-Autumn Festival
“If the current outbreak is brought under control, a domestic travel rebound will occur for the October Golden Week.”
This week, brought an excellent presentation by Nancy Dai of ForwardKeys assessing current trends in Chinese domestic travel - and the outlook for the forthcoming Mid-Autumn Festival/ October Golden Week holiday period.
Ms Dai noted 4 takeaways from the local travel activity at this juncture in 2021:
High volatility* in air travel demand triggered by cluster outbreaks (see graphic)
57% of travellers are booking 0-4 days before departure, and 29% 5-14 days out.
Passenger profiles are changing
Natural landscapes in the west and Hainan Island are popular with domestic travellers for the upcoming holidays.
* Travel tickets issued for the 1 September-15 October period were up 29.2% on 2020, as of 19 July. But, the recent COVID-19 outbreak in China saw a year-on-year fall in bookings for the holidays to -51.8% by 17 August. As Ms Dai surmises:
“Volatility has been driven in one direction by demand, and in the other by COVID-19 resurgences and travel restrictions.”
4) Sri Lanka Seeks to Animate Sluggish Reopening
No doubt, Sri Lanka eyed the success of neighbouring Maldives when it reopened to “Bio Bubble” travel on 21 January. Then, in July, it removed a quarantine requirement for fully vaccinated travellers. [Exclusions included India and Vietnam.]
It hasn’t yet gone to plan.
Sri Lanka received 9,629 visitors from January-March 2021, compared to 507,311 in the same 2020 period. It recorded just 2,429 visitors in July, taking the 2021 tally to 19,337.
In August, the Tourism Ministry lifted its ban on Indian visitors if they are fully vaccinated. Sri Lankan Airlines also reinstated a weekly Moscow route after 6 years.
Also this month, Sri Lanka’s Central Bank warned a full recovery of the tourism trade to its pre-pandemic levels would stretch through 2025.
Right now, that seems an arduous path.
In 2018, Sri Lankan tourism earned USD4.4 billion. In the first 7 months of 2021, the total was just USD26 million.
The nation is locked down until 6 September. A COVID-19 infection wave that seemed to peak in June began rising again in July, reaching a record 4,602 cases on 26 August.
Source: Total visitor arrivals Jan-July 2021, courtesy of Sri Lanka Tourism Development Authority
5) Slow Start for Saipan-South Korea Travel Bubble
As mentioned in the July issue, South Korea and Saipan agreed a travel bubble in June. Progress was slow in the first month. Only 363 South Koreans visited Saipan in July, including international students and residents.
Pure travel-bubble tourists (primarily honeymooners) totalled 42 out of 363.
The low number of tourists was due to a 4th infection wave in South Korea, plus a delay of vaccine supplies for Saipan's primary target market - who are in their 30s.
Travel agencies note that bookings are usually higher in late September, around/after the Chuseok holidays in South Korea. They add that tourists visiting Saipan showed a high degree of holiday satisfaction.
Saipan’s travel bubble support programmes, which include paying for all PCR tests for tourists, have been extended to the end of the year. In addition, USD500 is paid to all tourists who stay more than 8 nights, and USD250 to those staying under 7 nights.
But, with such low arrivals, is the bubble planning worth the effort for Saipan - and for South Korean travel agencies and airlines?
6) Asia and Europe: More Divided Than We Think!
A growing division is evident between Asian and European tourism. While European countries vaccinated rapidly, Asian nations are struggling with insecure vaccine supplies, large populations and, of course, the Delta variant.
While many Asian countries are still living under movement restrictions, European destinations reopened and welcomed summer tourists.
While tourism numbers are recovering in Europe, Asia is stagnant.
In Asia, ‘living with the virus’ has not yet been accepted. Even in China, where vaccination rates are high, there is a fear of new surges and restrictions. Large numbers of domestic tours have been cancelled.
The key is securing vaccines. Many Asian countries ordered late and received late. Some are also relying on donated vaccines, via COVAX and/or donor nations. Some, see Taiwan below and Vietnam, have been testing their own vaccines.
Until sufficient vaccines are available to inoculate the majority of national populations, Asia will be less favourable to travel to and invest in.
However, in the UK, death and hospitalisation rates are rising again. High vaccination rates were achieved, but people don't wear masks in public spaces or social distance.
This contrasts with much of Asia, where vaccination rates are starting to increase, but masking and social distancing are commonplace.
It feels that a combination of Europe’s vaccination level and Asia’s attitude towards social distancing protocols could help all countries fight the pandemic.
If only.
Click to read our 5 previous monthly reports:
7) Could Vietnam Bounce Back With Wellness Travel?
Tough times in Vietnam. Previously a COVID-19 success story, it is struggling with the Delta variant. Ho Chi Minh City is fully locked down. Yesterday, Vietnam counted the second-higest daily death toll (386) in ASEAN.
Vietnam had planned to reopen Phu Quoc island in October. That seems unlikely.
But optimism remains. A new survey reveals 60% of people expect domestic tourism to recover in the next 6 months. However, only 27% expect Vietnam to reopen to inbound tourism during that timeframe.
Once the vaccine rate increases and infections begin to fall, Vietnam's tourism sector could see more domestic travellers seeking out wellness destinations.
Wellness trends were emerging before the pandemic. Vietnam’s national and regional tourism authorities and travel providers developed new facilities and programmes tailored for international and local tourists.
Small villages with mountain views, hot springs and beaches attracted visitors seeking psychological recovery and mental well-being. Vietnam integrates its own heritage to differentiate these offerings. During the first year of the pandemic, these options proved popular for self-drive getaways.
From traditional Vietnamese medicines, teas and vegetarian cuisines to natural hot springs, niche wellness and a closeness to nature offer brightness in dark times.
8) Malaysia Targets Q4 Travel Restart
“I hope that domestic travel can start again in September, when 80% of the population is double-dose vaccinated, and then continue with international travel towards the end of October,” Faeez Fadhlillah, CEO of TripFez and Honorary Treasurer of the Malaysian Association of Tour & Travel Agents, told The South East Asia Travel Show this month.
Those sentiments are echoed across Malaysia’s struggling travel sector. AirAsia CEO Tony Fernandes has said likewise. Interstate travel has been off limits since January.
August was a torrid month, with the fall of Prime Minister Muhyiddin Yassin’s government. While many of the same ministers returned under new PM Ismail Sabri, the economy is struggling.
Restrictions for vaccinated residents were lifted mid-month in the capital Kuala Lumpur. But, despite an accelerating inoculation rate, Malaysia saw its highest rate of new infections (24,599) and deaths (393) on 26 August.
Current areas of infection concern are the states of Sabah, Sarawak, Penang and Kedah, which count many of Malaysia’s primary tourism destinations.
9) ASEAN COVID Resilience Index Reverse
Keep reading down this COVID Resilience Index, and you’ll find Thailand, Vietnam, Indonesia, Philippines and Malaysia taking the bottom 5 spots, from 49th-53rd. Better news for Singapore, which is #8th. Hong Kong is the only other Asia Pacific entry in the Top 20. How is this related to travel? A Chinese traveller survey by Dragon Trail revealed 56% of respondents would feel safe if a destination had “zero confirmed cases,” while 31% would choose a destination that had “reached herd immunity.”
10) Travel Concerns for Taiwan’s Medigen Vaccine
Taiwan reported zero local COVID-19 cases for the 1st time in 108 days on 25 August, but low public confidence accompanied the launch of its own Medigen vaccine. A survey showed that Moderna and Pfizer are preferred options due to fears that as Medigen is not approved by the WHO it won’t be accepted by destinations worldwide.
11) Qantas Eyes Christmas Route Reboot
Australia’s flag carrier revealed plans to reintroduce international routes to “COVID-safe destinations” in December should the nation hit its 80% inoculation target. Potential destinations include Singapore, US, Japan, New Zealand, UK and Canada. Locations with “low vaccine rates and high COVID infections,” such as Bali, Jakarta, Manila, Bangkok, Phuket and Ho Chi Minh City, must wait until April 2022.
And finally, this month…
12) Regional Cooperation for Sustainable Tourism Development in South East Asia
Royal Geographical Society Annual Conference 2021 (with IBG)
2 September 2021 (0900 BST / 1600 SGN)
Jaeyeon Choe will co-chair the above panel, with Jarkko Saarinen and Pham Hong Long, featuring presentations by Gary Bowerman (Will Asian Consumers Demand a Green Revolution in Travel Experiences?), Hannah Pearson, Kiran Shinde and Sharmini Paramasivam. Our session addresses ASEAN’s regional tourism cooperation, or lack of, and explores regional pathways for inclusive growth and sustainable development.
And, that’s a wrap.
The Asia Pacific Travel & Tourism Report will return on 3 October.
Asia Travel Re:set is back next Sunday. Here’s the most recent issue (#52) in case you missed it
Have a great week,
Gary